Building Sustainability into Business Strategy
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1 Building Sustainability into Business Strategy Dave Stangis Vice President, Corporate Social Responsibility November 20, 2009
2 2
3 The Strategic Question How will we connect Strategy #7 to our Mission and six other strategic platforms, and translate it into an action plan for our global workforce? CSR & Sustainability are approaches to business operation and innovation that build employee engagement, improve environmental performance, create positive social impacts, enable operational efficiency, reduce cost, foster innovation, strengthen relationships with customers and consumers and ultimately create business advantage. 3
4 Building a Long-term Successful Strategy Characteristics A shared perspective on CSR for the Company Authority and governance systems to make judgments and execute Core metrics defined and long-term performance goals defined Business units have the tools they need to assess and improve Executives have the messages and direction they need to activate Transparent, with appropriate presence defined setting the dials Blend of strong operations AND key marketing strategies Every priority has a metric, a system to measure it, and a target Active stakeholder engagement/management Focus that provides a Campbell Signature and filters demands for attention I get it is the reaction of our customers, employees and external thought leaders. 4
5 Focusing Efforts Aligning with our Mission CSR at Campbell - Driving global wellness and nutrition, helping to build a sustainable environment, and honoring our role in society from the farm to the family. Consumers Environment Workplace Society Deliver on the Consumer Promise Lead the Sector in Environmental Stewardship An Extraordinary Workplace where Employees Drive CSR Innovation Nourishing our Neighbors Everywhere, Every Day Wellness and Nutrition Food Safety and Quality Strategic Partnerships Authentic Nourishment Helping the Consumer be more Sustainable Reducing resource use Drive sustainability in agricultural systems and supply chain Reduce the footprint of key products Full employee engagement in CSR Model of Diversity and Inclusion Benchmark for CSR Integration Resolute commitment to our communities Partnering to address Hunger, Wellness and Nutrition Signature programs with Social Impact Together we will build the world s most extraordinary food company by nourishing people s lives everywhere, every day. 5
6 Crystallizing our Focus Areas It is critical to distill our key messages for our employees, customers and stakeholders We are developing a set of Destinational Goals in each of our 4 Pillars Campbell's CSR Corporate Imperative Agenda Campbell Mission - Together we will build the world s most extraordinary food company by nourishing people s lives everywhere, every day. CSR Vision - "Build the most extraordinary CSR Strategy and Culture in our industry -Anchored in our core competencies and pillars -Driven by objectives and our associates innovation -Activated by key destinational goals 2020 Destinational Goals Nourishing People's Lives Health and Wellness in our Product Portfolio Nourishing our Neighbors Addressing Hunger in our home town communities and leveraging our key signature programs Nourishing our Workplace - Employee Engagement in CSR and Sustainability. Nourishing our Planet Environmental Impact of our Manufacturing Operations 6
7 The CSR Leadership Network Steering Committee Campbell CLT Customer/Consumer Consumer Insights Cause Marketing P&L Business Leads Sales & Marketing Consumer Response Industry Partnership Europe Asia Environment Operations Supply Chain Procurement Packaging Agriculture Logistics Plants Brands Community Public Affairs Campbell Foundation Volunteerism Cause Marketing Procurement Citizenship Donations Plants Workplace Human Resources Communications Comp & Benefits Org Effectiveness Engagement Staffing Diversity, Inclusion Asia, Europe The teams common objectives are to identify priorities, drive focus, improve enterprise-wide decision-making, enhance efficiency, increase visibility, and promote understanding, engagement and competency within the organization 7
8 Importance to Campbell Stakeholders Important Very Important Identify Issues from a wide range of stakeholders and sources Materiality Analysis Identify Filter Prioritize Primary sources Customers Consumer research Employees Scientific & Industry Research Benchmarking Investors Public Policy Community partners Suppliers Service Providers NGO s and issue activists Regulatory Agencies Media Outlets Emerging Issues Monitoring Key Cause Partners National Advertising Division, FTC Factory Mgrs Brand partners Trade Groups Professional Orgs. Shareholder advocates Innovation Partners and Portals Issues Wellness, Nutrition Market performance Food Safety Quality Ingredients Sustainable Agri. Weight Management Packaging Water Use Waste Management Advertising Enterprise Risk Mgt. Energy/Climate Hunger Relief Transparency Cause marketing Transportation Infra. Employee Safety Ethics, Corporate governance Labor relations Employee Engagement Training & Devel. Diversity Education Camden comm. Investment Plant Communities Human rights Executive pay Political contributions International trade Business Continuity Measured Against -Destinational Goals and Metrics Campbell Mission and 7 Strategies -CSR Focus Areas -Campbell Success Model -Customer and Consumer Trends -Regulatory Frameworks -Impact to Community -Total Delivered Cost -Brand Reputation -Employee recruitment and engagement -Strategic & Operating Plans Internal Review Strategic and Annual Operating Plans Board & Governance Updates CSR Leadership Network Emerging Issues Management Important Increasing Focus Very Important Impact on Campbell s Business Review- Integrate into business planning and External Stakeholder Relationships External Review Feedback to CSR report Customer, Consumer and Supplier input Investor, NGO, Stakeholders engagement External research, Regs, Trade Groups 8
9 Importance to Campbell Stakeholders Materiality Analysis = What s Important and Why Important Very Important Marketplace Advertising and Labeling Nutrition Information Responsible Sourcing Health and Wellness Consumer Education Disease prevention Environmental Performance Recycling Community Key Cause Campaigns NGO Relationships Marketplace Total Shareowner Return Health and Wellness Nutrition, Weight Management Food Safety & Quality Environmental Performance Resource Stewardship Packaging Community Citizenship in Plant Communities Workplace Culture, Engagement, Ethics Marketplace Supply Chain Performance Supply Chain Standards Stakeholder Relations Political influence Community and Investor Outreach Workplace Board Governance Executive Compensation Community Youth Programs Education Marketplace Customer and Consumer Priorities Product and Market growth Supply Chain Sourcing Transportation and Logistics Workplace Managing CSR Sustainability Training and Development Benefits and Compensation Diversity and Inclusion Important Impact on Campbell s Business Very Important 9
10 Program integration steps: Environment and Customer/Consumer Key focus areas defined Energy, Climate, Water, Waste, Agriculture, Packaging Issuance of new Environmental Sustainability Policy statement and adoption of UN Global Compact Environmental Sustainability performance integrated into investor communications Sustainable Packaging Guidelines developed Solar panel project installed in Toronto & under evaluation in Sacramento Wind farm feasibility study underway in Napoleon, OH Direct engagement and strong alignment with our largest customer on CSR/Sustainability strategies New sustainability scorecard for suppliers Updating Customer communications to leverage CSR Supporting Consumer communications with sustainability Eliminated more than 3.5 million lbs of steel; 300,000 lbs of paper; 440,000 lbs of cardboard; 280,000 lbs of corrugate; 300,000 lbs of plastic; and produced annual savings of $4.5 million In
11 Program Integration Steps: Community and Workplace CSR Operational and Strategic milestones included in Scorecard for Annual Incentive Plan Update of Foundation materials on-line and internal CSR web portal Launch of Nourishing our Neighbors Portal and expansion of Dollars for Doers Program Expansion of Campbell Success Model to integrate CSR Investigating ways to optimize current food donation efforts CSR and Sustainability integrated into employee objectives CSR and Sustainability integrated into recruiting materials Sustainability and Sustainable Packaging Fairs for employees Added Carpool parking and expanded Recycling and Green Teams Campbell Soup acknowledged in Ethical Corporation report: How to embed corporate responsibility across different parts of your company 11
12 12
13 External Measures as Tools for Improvement Ranked #2 in CSR Reputation by Reputation Institute and Center for Corporate Citizenship in 2008 CPB added to Dow Jones Sustainability Indexes, Calvert Institutional Investor Fund, F&C Asset Management Ethical Funds Named to Top Green Company List by Newsweek - #121 Press interviews and blogs, with key take-away messages: Sustainable Industries Campbell Soup Co. is stepping up its game in spite of the recession. GreenBiz How to Cut Costs and Be a Green Hero Environmental Leader Campbell is taking CSR seriously Climb the Green Ladder (book) How to translate CSR ideas into business value McKinsey Whitepaper on Metrics The future of metrics; business value drivers Other recognitions for Environmental, Workplace and Wellness 13
14 Building Sustainability into Business Strategy Dave Stangis Vice President, Corporate Social Responsibility November 20, 2009
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